Top Stories
HP to cut about 12% jobs by end of fiscal 2025
Global Banking and Finance Review
Company
(Reuters) -HP Inc said on Tuesday it expects to cut up to 6,000 jobs by the end of fiscal 2025, or about 12% of its global workforce, at a time when sales of personal computers and laptops are sliding as shoppers tighten budgets.
(Reuters) -HP Inc said on Tuesday it expects to cut up to 6,000 jobs by the end of fiscal 2025, or about 12% of its global workforce, at a time when sales of personal computers and laptops are sliding as shoppers tighten budgets.
The PC maker also forecast a lower-than-expected profit for the first quarter as it expects softness in both consumer and commercial demand.
“Many of the recent challenges we have seen in FY’22 will likely continue into FY’23,” said chief financial officer Marie Myers during a post-earnings call.
HP estimates it will incur about $1.0 billion in labor and non-labor costs related to restructuring and other charges, with nearly $600 million in fiscal 2023 and the rest split between the following two years.
The company, which employs nearly 50,000 people, said it expects to reduce headcount between 4,000 and 6,000.
The restructuring comes at a time when most companies including Amazon.com Inc, Facebook’s parent Meta Platforms Inc and Cisco Systems Inc are making deep cuts to their employee base to navigate a potential downturn in the economy.
HP forecast current-quarter profit between 70 cents and 80 cents. Analysts on average expect 86 cents, according to Refinitiv data.
PC sales have shrunk from the heights hit during the pandemic as households and businesses reduce spending in the face of decades-high inflation, putting pressure on companies such as HP and Dell Technologies Inc.
Earlier on Monday, Dell reported a 6% fall in third-quarter revenue. The company’s Chief financial officer Tom Sweet said the ongoing macroeconomic factors including inflation and rising interest rates would weigh on customers next year.
HP also reported a 11% fall in fourth-quarter revenue to $14.8 billion.
Shares of the Palo Alto, California-based company were up nearly 2% in extended trading.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)
Job creation refers to the process of generating new employment opportunities, often driven by economic growth, business expansion, or new investments.
Corporate strategy is a plan that outlines how a company will achieve its goals, including resource allocation, market positioning, and competitive advantage.
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by GDP.
Restructuring refers to the process of reorganizing a company's structure or operations to improve efficiency and adapt to changes in the market.
Explore more articles in the Top Stories category
